Severance pay received for loss of job was to be treated as capital receipt

Ajay B. Ghose Vs DCIT (ITAT Mumbai) Conclusion: Assessee was paid severance pay due to loss of employment and the receipt of severance pay though the nomenclature was not mentioned as ex-gratia but took the character of a capital receipt and the payment was made voluntary by the employer for loss of employment and such capital receipt was not taxable in the hands of the assessee. Held: Assessee was working with the AREVA group from the year 2006. He had received the intimation with the addition of severance pay of Rs.74,28,585/- and mismatch of income as per Form no 26AS. In the present case, ...